Digital transformation is often a Business transformation with new IT

There is a common statement that

digital transformation is not about technology, but more about changing the way of thinking, which manifests into a subsequent change in any or even all elements of the business model.

If so, then what would be the difference between Digital/technological transformation and Business/strategy transformation? The logical answer is that:

• Digital Tr. — more about digitalization — of activities, implementation of information systems, algorithms, using new gadgets, sensors, then information collection from them and its analysis,
• and Biz Tr. — is more about changing the way of doing business — restructuring the organizational hierarchy, changing decision-making methods, approaches to goal setting, division of responsibility, structure and sources of revenue and cost, amending consumer segments and markets, and other changes not necessarily related to IT.

However, in the current digital age, business changes are very often associated with the use of IT. Today digital technologies are needed not only for competitive advantage, but also to ensure a competitive minimum for survival. And even if the company itself is still not actively using IT, its competitors, partners and consumers are already using it.

New/digital technologies are both:

• the reason for the need (and even the inevitability) of changes, and
• the way to implement these changes.

Causal diagram of new technologies effect

Now, let's return to the attempt to define the term I started this post with. I think it is proper to talk about the intersection of the following two activities and define the next term:

Digital business transformation — is the change of any or even all elements of the business model, due to the development of digital technologies and with the use of them.

In short, on the one hand, other transformations are possible, not only digital, and on the other hand, digitalization of only one part of the business is possible too. Therefore, I believe that it is better to use a more specific term — Digital business transformation, which is located at the intersection of business and IT.